Unit 2 - Marketing Flashcards
What is a target customer?
Someone who is most likely to buy a particular product
What are types of market segments?
-Age
-Gender
-Jobs
-Income
-Location
-Lifestyle
What is market share?
The proportion/number of customers a business has in relation to the total number of customers
What is a market leader?
The business with the highest number of customers in a particular market
What is segmentation?
A market segment is a group of customers who have similar needs and wants
What are advantages of segmentation?
-Products are developed to suit customer needs
-Can target specific groups with products/promotions
-Helps set appropriate prices
-Helps deciding where to sell the product
What are the two types of market research?
Field research and desk research
What are advantages of field research?
Correct, up to date, gathered for a specific purpose, sources trusted.
What are disadvantages of field research?
Expensive, small samples may limit results, trained staff required
What are advantages of desk research?
More affordable as information has already been gathered, wide variety of sources, decisions made quickly due to accessible information
What are disadvantages of desk research?
Information may be out of date, may not be completely correct, info can be biased, competitors can access same info
Name field research methods
-Face to face interview
-Postal survey
-Focus group
-Telephone interview
-Online survey
-Observation
Advantages and disadvantages of face to face interview
Advantages - Two way communication, mistakes and misunderstandings can be cleared up straight away
Disadvantages - Can be expensive, researchers have to be selected and trained, unpopular with consumers
Advantages and disadvantages of postal survey
Advantages - Not expensive, no training needed
Disadvantages - Response rate is very low, questions must be very simple and easy to answer
Advantages and disadvantages of focus group
Advantage - Topics can be explored in depth
Disadvantages - Expensive, can be difficult to analyse information
Advantages and disadvantages of telephone interview
Advantages - Can phone anyone, not expensive
Disadvantage - Response rate is low
Advantages and disadvantages of online survey
Advantages - Large sample size, not expensive
Disadvantage - Need internet access
Advantages and disadvantages of hall test
Advantage - Real life and behaviours in action
Disadvantage - Samples are random
What is included in the marketing mix?
Product
Price
Place
Promotion
What does the product consist of?
-Actual item
-Packaging
-Image
-Guarantee
-After sales service
Why is packaging important?
-It can give added benefits to a product
-Make the product more appealing
-Protect the product during transport
-Legal information can be displayed
What are the stages of product development?
-Generate the idea
-Analyse the idea
-Prototype
-Test the product
-Alter the product
-Produce the final product for sale
What is a prototype?
The first working model, to allow for improvement
What are the four stages of the product lifestyle?
Introduction - low sales
Growth - Sales slowly rise
Maturity - Sales rise fastest
Decline - Sales fall
What are types of extension strategies?
-Improve the product
-Change the packaging
-Change prices
-Change promotions
-Re brand the product
-Create line extension
What are advantages of branding?
-Recognition
-Loyalty
-Perception of high quality
-World wide sales
What are disadvantages of branding?
-Time
-Expensive
-Attacks/threats (fakes)
What should a company think about before choosing the price for a product?
-Cost of production
-Quality
-How many they are hoping to sell
-How much the customer is willing to pay
-How much the competition is selling their product for
-The products stage in the product life cycle
-The products image
-Level of profit desired
What are types of pricing strategies?
Low price - Charge less than competition
High price - Suggest better quality
Promotional pricing - Short term discount
Cost plus - Adding a percentage to the cost of materials
Psychological pricing - Use techniques to suggest the product is cheaper than competitors (99p)
Price skimming - High when product is first launched then the price is lowered
Penetration pricing - Low price to start then increases
What is e-commerce?
Buying and selling products online (online shopping)
Factors considered for business locations
-Where the customer is located
-Availability of suitable premises
-Parking facilities
-Suitable infrastructure
-Competition
-Availability of employees
What are benefits of e-commerce?
-Don’t need to buy a shop meaning more profits
-Access to more customers
-Customers can shop 24/7
What is the distribution method affected by?
-Type of product
-Cost of delivery
-Speed of delivery
What are the 4 methods of distribution?
Road, rail, air and sea
What are advantages and disadvantages of road?
Advantages - Direct to door, different lorries for different cargo
Disadvantages - Fuel costs, road delays, emissions
What are advantages and disadvantages of rail?
Advantages - Heavy loads, large quantities
Disadvantages - Still need to use lorries, some areas lack railways
What are advantages and disadvantages of air?
Advantages - Fast, airport locations in key cities
Disadvantages - Expensive, airports not in all cities
What are advantages and disadvantages of sea?
Advantages - Bulky loads, standardised containers
Disadvantages - Slow, location access
Name methods of advertising
-Email
-Television
-Billboards
-Celebrity/influencer endorsement
-Newspapers
What are advantages and disadvantages of television advertising?
Advantages - Can reach a large geographical audience, demonstrations can be shown
Disadvantages - Very expensive, viewers may not watch when adverts come on
What are advantages and disadvantages of radio advertising?
Advantages - Can reach a large audience, cheaper than tv
Disadvantages - Only sound(no demos), Listeners can tune out during adverts
What are advantages and disadvantages of cinema advertising?
Advantages - A captive audience, adverts can be matched to audiences that represent market segments
Disadvantage - Limited audience
What are advantages and disadvantages of newspaper advertising?
Advantages - Can keep advert, target market segments through choice of newspaper
Disadvantages - Can be expensive, easy to ignore
What are advantages and disadvantages of billboards?
Advantages - Usually in busy locations, can be cheaper than other forms of advertising
Disadvantages - May be ignored, limited info
What are advantages and disadvantages of app advertising?
Advantages - Can target different groups, don’t have to be online to view
Disadvantages - Limited to phone/tablet users, customers can get annoyed by ads
What are advantages and disadvantages of email advertising?
Advantages - Reach a wide audience, relatively cheap
Disadvantages - Can be annoying, easily deleted
What are different types of sales promotion?
-Discounts
-Coupons
-Free samples/gifts
-Loyalty cards
-Celebrity endorsement
-Product placement
What is celebrity endorsement?
When a business approaches celebrities to appear in adverts or to be seen using their product
What is product placement?
When a firm pays for its product to be used in a film or tv series
What does ethical marketing include?
-Must not mislead the consumer
-Should not offend the customers beliefs or moral senses
-Promises must be kept in the product - it must do what it says it does
-Adverts must not be obscene or indecent
How can email be used in marketing (Technology)
Used to communicate a sales promotion to an existing customer
How can desk top publisher be used in marketing (Technology)
Used to produce newspaper adverts
How can social media be used in marketing (Technology)
Promote a brand to followers
